2011 Regional

Labor Agreement

Communications Workers of America District 3 – Puerto Rico

and

AT&T Mobility, LLC

Effective Date: February 19, 2011 Expiration Date: February 20, 2015

2011 LABOR AGREEMENT TABLE OF CONTENTS

Article No. Title

Page No.

1 Agreement 1 2 Recognition and Establishment of the Unit 2 3 Classification of Employees 4 4 Agency Shop 5 5 Deduction of Union Dues 6 6 Management Rights 7 7 Grievance Procedure 8 8 Mediation 11 9 Arbitration 13 10 No Strike – No Lockout 18 11 Seniority 19 12 Hours of Work 20 13 Work Assignments 22 14 Force Adjustment 23 15 Non-Discrimination 25 16 Safety 26 17 Company-Union Relationship 27 18 Union Activities 30 19 Basis of Compensation 31 20 Travel 34 21 Absences 35 22 Vacations 38 23 Holidays 40 24 Waiver of Further Bargaining 43 25 Duration of Agreement 44 Bargaining Team Members 45 Appendix A - Wages 46

Memorandum of Understanding / Letters of Agreement

MOU Memorandum of Understanding Subcontracting 50 LOA 1 Personnel Records 51 LOA 2 Strategic Alliance Committee 52 LOA 3 Monthly Sales Quotas 54 LOA 4 At-Risk Commission 56 LOA 5 Call Quality Observation 57 LOA 6 Timely Discipline 59

ARTICLE 1

AGREEMENT

THIS AGREEMENT is made and entered into effective February 19, 2011 by and between AT&T Mobility, LLC (hereinafter referred to as the “Company,” the “Employer,” or “Management”) and COMMUNICATIONS WORKERS OF AMERICA (hereinafter referred to as the “Union”).

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ARTICLE 2 RECOGNITION AND ESTABLISHMENT OF THE UNIT

Section 1. The Company recognizes the Union as the sole collective

bargaining agent for the purpose of collective bargaining with respect to rates of pay, wages, hours of employment and other conditions of employment for those covered employees in CWA District 3. The term covered employee and/or employees as used in this Agreement shall mean, those employees within the job titles set forth in Appendix A, and in accordance with the “Memorandum of Agreement Regarding Voluntary Recognition” between CWA & AT&T Mobility LLC dated and effective March 9, 2011, but excluding Outside Sales Employees and all employees exempt by the National Labor Relations Act.

Section 2. a. The Company shall have the right to create, define, expand,

reduce, alter, combine, move, transfer, relocate or terminate any job, job content, job classification, job title, department, operation or service in the Bargaining Unit; to establish duties in connection with the creation of a job title/classification herewith as it shall deem appropriate; and to subcontract any work. (1) The Company shall notify the Union in writing of any newly

created classifications or titles, the duties established therefor, and the temporary wage rate.

(2) Upon such notification the Company shall be free to staff such

positions.

b. The Union shall have the right, within thirty (30) calendar days of the date the Union was notified by the Company of the new classification or title, to initiate negotiations concerning the temporary wage rate established by the Company. If negotiations are not so initiated within thirty (30) calendar days, the temporary wage rate will be made permanent. If negotiations are so initiated within thirty (30) calendar days, they shall commence within thirty (30) days after the Union’s request to initiate negotiations. The parties agree that they shall negotiate for a period of no more than sixty (60) days from the date such negotiations commenced.

(1) If an agreement is reached by the parties within the said sixty

(60) days as to the appropriate permanent wage rate, such

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agreement shall be applied retroactively to the day of the establishment of the new classification or title.

(2) If no agreement as to the appropriate permanent wage rate

for such classifications or titles has been reached within the said sixty (60) days, the issue of the appropriate permanent wage rate shall be subject to a binding mediation process. A mediation conference shall be held as soon as possible but no later than thirty (30) days following conclusion of negotiations.

(a) If agreement is reached in the mediation process, as to

the appropriate permanent wage rate, such agreement shall be applied retroactively to the day of establishment of the new classification or title.

(b) If no agreement is reached in the mediation process,

each party shall submit a final proposed permanent wage rate to the mediator at the conclusion of the mediation conference. The mediator shall determine which of the final submissions is appropriate, taking into account the facts, discussions and arguments presented by the parties during the conference. The permanent wage rate designated by the mediator shall be applied retroactively to the day of the establishment of the new classification or title.

(3) The mediator used in the mediation process referred to in

paragraph (2) above, shall be selected by mutual agreement from a list of five (5) mediators compiled by the American Arbitration Association. Such individuals on the list shall possess acknowledged expertise in the area of job evaluation.

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ARTICLE 3 CLASSIFICATION OF EMPLOYEES

Section 1. A full-time employee shall be deemed to be any employee regularly scheduled to work forty (40) hours per week. Section 2. A part-time employee shall be deemed to be any employee regularly scheduled to work less than forty (40) hours per week.

Section 3. The Company shall have the right to reduce employee classifications from full-time to part-time or to increase employee classifications from part-time to full-time. Section 4. Agency workers and independent contractors shall not be deemed to be employees of the Company and, as such, shall not be covered by any of the terms or conditions of this Agreement. Section 5. Retail work shall be deemed to be work performed in any store, kiosk, or similar establishment dedicated to commercial operations, or to the retail sale or transfer of goods or combining wholesale and retail sales or transfer of goods. All other work shall be deemed non-retail work. Section 6. Employees shall be subject to a probationary period of ninety (90) days commencing on the first day of employment; provided, however, that the Company may extend said period for an additional ninety (90) days upon written notice to the Union. The Company can terminate the probationary employee at any time before the expiration of the probationary period.

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ARTICLE 4 AGENCY SHOP

Effective thirty (30) days following the effective date of this Agreement, each employee employed on or before such effective date and covered by the terms and conditions of this Agreement shall, as a condition of employment, either become a member of the Union, or pay or tender to the Union amounts which are the equivalent of periodic Union dues. Employees covered by this Agreement employed after the effective date thereof shall, on or after the thirtieth (30th) day of their employment, and as a condition of such employment, either become a member of the Union or pay or tender to the Union amounts which are the equivalent of periodic Union dues. The foregoing shall be subject to any prohibitions or restrictions contained in the laws of the jurisdiction covered by this agreement.

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ARTICLE 5 DEDUCTION OF UNION DUES

Section 1. The Company agrees to make collections of the standard Union dues and CWA COPE-PAC through payroll deduction from the employee’s pay, upon receipt of a written authorization form signed by the employee and delivered by the Union to the Company. This authorization shall continue in effect until canceled by written notice from either the Secretary-Treasurer of the Union or the employee as set forth in the Payroll Deduction Authorization for Union Dues card. The Company also agrees to electronically remit the amount so deducted to the designated representative of the Union on a monthly basis and to furnish the Union a list of employees for whom such deductions have been made and the amount of each deduction. The Union shall indemnify, save and hold harmless the Employer against any form of loss or liability arising out of any action taken or omitted by the Employer at the request of the Union under this section. Section 2. The Company shall bear the full cost of dues deduction and CWA COPE-PAC as set forth in Section 1, except that the Union agrees to print the dues deduction authorization cards in a form approved by the Company and the Union.

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ARTICLE 6 MANAGEMENT RIGHTS

Subject to applicable law, all rights possessed by the Employer prior to

the recognition of the Union, which rights are not governed by the terms of this Agreement, are reserved and retained by the Employer.

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ARTICLE 7 GRIEVANCE PROCEDURE

Section 1. All complaints or prospective grievances by the Union shall normally be taken up informally with the first level of Management in an effort to resolve the matter. Nothing in this Article shall be construed to deprive any employee or group of employees from presenting individually to the Company any complaint, and to have such complaints adjusted without the intervention of the Union, as long as the adjustment is not inconsistent with the terms of this Agreement, and provided further that a Union representative has been given opportunity to be present at such adjustment. Section 2. A grievance is a complaint by the Union:

a. Alleging violation of the provisions or application of the provisions

of this Agreement. b. Alleging that an employee has been discharged, suspended,

demoted or otherwise disciplined without just cause. c. Alleging that an employee has suffered improper loss or reduction

of any contractually established benefits arising out of the job or of employment with the Company.

Any such grievance not addressed or resolved in Section 1 above, which is reduced to writing, setting forth, if applicable, specifically the substance of the grievance and the provision or provisions of the Agreement allegedly violated, delivered by a Union representative to the designated Company representative in accordance with Section 3 following, within thirty (30) calendar days of the action complained of, shall be considered and handled as a formal grievance. However, the rights of Management, as set forth in this Agreement, and all other inherent rights of Management not expressly limited by a specific provision of this Agreement are vested exclusively in the Company and are not subject to the grievance or arbitration procedures of this Agreement.

Section 3. The formal grievance procedure shall normally consist of

two (2) successive steps. Notice of grievance and appeals of decision shall be forwarded in accordance with the following:

STEP 1

The designated Company representative shall contact the Union representative within seven (7) workdays of receipt of written notice of

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the grievance for the purpose of setting a mutually agreeable meeting date and location. The designated Company representative will provide a decision in writing within ten (10) workdays after completion of the meeting(s) unless mutually agreed otherwise by the parties.

STEP 2

If the answer or decision of the Company is unsatisfactory to the Union, the grievance shall be appealed to the designated Company representative, in writing, within thirty (30) workdays after a decision has been rendered at the first step. The designated Company representative shall contact the Union representative within seven (7) workdays of receipt of the written appeal for the purpose of setting a mutually agreeable meeting date and location. The meeting may be done by phone. The designated Company representative will provide a decision in writing within fifteen (15) workdays, after completion of the meeting(s), unless mutually agreed otherwise by the parties.

Section 4. A decision at Step 2 of the formal grievance procedure, as set forth in Section 2, shall be construed as full completion of the formal grievance procedure. Section 5. After a notice, as set forth in Section 2 above, has been received by the Company, the Company will not attempt to adjust the grievance with any employee or employees involved. Any proposed adjustment will be presented by the Company to the designated Union representative. Section 6. The Company will keep the Union fully informed, in writing, on a current basis, of the designated Company representatives referenced in Sections 2 and 3 above. Section 7. Formal grievance meetings shall be held at mutually agreeable times and locations. For the purpose of presenting a grievance, those employees of the Company including the aggrieved employee(s) and the employee representative(s) designated by the Union, who shall suffer no loss in pay for the time consumed in, and necessarily consumed in traveling to and from grievance meetings, shall not be more than two (2) at any level of the grievance procedure. Section 8. Failure to submit or pursue a grievance under the conditions and within the time and manner stated above shall be construed to be a waiver by the employee and the Union of the formal grievance. Any complaint of this type shall be handled by the Company as an informal

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grievance on an informal basis. Informal grievances are not subject to arbitration. Section 9. Any provision in this Article to the contrary notwithstanding, no forms of discipline, including suspension and discharge, of employees with less than ninety (90) days of service with the Company shall be subject to the grievance procedure, provided, however, that the Company may extend said period for an additional ninety (90) days upon written notice to the Union.

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ARTICLE 8 MEDIATION

Section 1. At the conclusion of the formal grievance procedure either party may elect to submit the matter to mediation, with the consent of the other party. Such submission shall not extend the time periods permitted to process the grievance to arbitration. The party desiring the matter be so submitted shall submit a written statement of appeal within two (2) weeks after receipt of the position statement rendered by the Company in the final step of the grievance procedure. Section 2. As to the mediation provided by this Article:

a. Each party shall have one principal spokesperson at the mediation conference.

b. Any written material presented to the mediator shall be returned to the party presenting that material at the termination of the mediation conference. The mediator may, however, retain one (1) copy of the written grievance, to be used solely for the purposes of statistical analysis.

c. Proceedings before the mediator shall be informal in nature. The presentation of evidence is not limited to that presented in the grievance proceedings, the rules of evidence will not apply, and no records of the mediation conference shall be made.

d. The mediator will have the authority to meet separately with any person or persons, but will not have the authority to compel the resolution of the grievance.

e. If no settlement is reached during the mediation conference, the mediator shall provide the parties with an immediate oral advisory opinion, unless both parties direct that no opinion shall be provided, provided, however, that said opinion, if issued, shall not be published or communicated to the public or to either parties’ members or employees but shall be used internally by either party solely for the purpose of analysis and assessment. In no event shall such advisory opinion, if issued, be deemed binding on either party.

f. If the mediator provides an opinion, he/she shall state the grounds on which it is based.

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g. The advisory opinion of the mediator, if accepted by both parties, shall not constitute a precedent, unless the parties otherwise agree.

h. The mediator's fee and expenses will be divided equally between the parties.

Section 3. If no settlement is reached at mediation, the parties are free to arbitrate under the Arbitration Article. Section 4. In the event that a grievance which has been mediated subsequently goes to arbitration no person serving as a mediator between these parties may serve as arbitrator. Nothing said or done by the mediator may be referred to at arbitration. Nothing said or done by either party for the first time in the mediation conference may be used against it at arbitration.

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ARTICLE 9 ARBITRATION

Section 1. If at any time a controversy should arise regarding the true intent and meaning of any provisions of this Agreement, including Memoranda of Agreement or other Letters of Understanding interpreting the Agreement in regard to the performance of an obligation hereunder, which the parties are unable to resolve by use of the grievance procedure, the matter may be submitted to arbitration as outlined in the provisions of this Article upon written request of either party to this Agreement. Section 2. If the answer or decision of the Company’s representative at the conclusion of Step 2 of the formal grievance procedure, as described in Article 7, is unsatisfactory to the Union, the Union shall, in writing, to the designated Company representative, within sixty (60) calendar days following the Company response at Step 2 of the formal grievance process, request arbitration, if such is desired. Section 3. Permanent Arbitration Panel

a. The parties will select a panel of at least eight (8) but no more

than ten (10) qualified bi-lingual (Spanish and English speaking) arbitrators to serve on a permanent panel to resolve grievances that are pursued to arbitration under this Article. To select this panel, each party shall initially be entitled to recommend up to five arbitrators subject to objection by the other party.

b. Once the initial panel has been created, each arbitrator will serve

until the termination of this Agreement unless his/her services are terminated earlier by written notice from either party to the other. The arbitrator will be notified of his/her termination by a joint letter from the parties. The arbitrator will conclude his/her services by resolving any grievance previously heard. The party who did not request removal will be entitled to propose a replacement arbitrator for the panel subject to objection by the other party.

c. The permanent panel of arbitrators shall be maintained by listing

the arbitrators in alphabetical order. Arbitrators will be assigned cases in rotating alphabetical order. The compensation and expenses of the arbitrator and the general expenses of the arbitration will be borne by the Company and the Union in equal parts. Each party will bear the expense of its representatives and witnesses. Any expenses incurred because of any cancellation or

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postponement of a hearing will be borne by the party requesting such cancellation or postponement.

Section 4. Whenever the Union notifies, in writing, the Company that the election to arbitrate is involved in the Union’s internal appeal’s process and that the notice to arbitrate is therefore being given solely to preserve the Union’s right to arbitrate in the event the appeal is upheld, the parties agree that the running of the sixty (60) day time limit provided for in Section 2 of this article shall be satisfied as of the date the Company receives said notice, subject to the following provisions of this section:

a. The Union must promptly appeal the decision within its internal appeal process to the next scheduled convention. But, in no event shall the Union’s internal appeal last longer than one (1) year following the date of the Company’s denial at Step 2 of the formal grievance procedure. Grievances that have not been resolved in the Union’s internal appeal process at the conclusion of one (1) year from the date of the occurrence giving rise to the grievance shall be closed and deemed withdrawn.

b. Upon the initiation of an appeal in the Union’s internal appeal

process, any award of back wages will be limited to the period between the effective date of the incident giving rise to the grievance and the date on which the Union initiated its internal appeal process unless the Company has received an extension of a deadline outlined in this Section. In the event that the Company has received an extension of a deadline outlined in this Section, the arbitrator may award back pay for the period of the Company’s extension in addition to the time mentioned previously in this Section.

c. Within fifteen (15) days following the outcome of its internal

appeal process, the Union shall promptly notify the Company of whether it intends to pursue the grievance in arbitration. If the Union fails to notify the Company within fifteen (15) days the grievance shall be closed and deemed withdrawn.

d. If the appeal is denied in the Union’s internal appeal process, the

Union shall also notify the Company of the withdrawal of its previous notice of election to arbitrate the subject grievance.

Section 5. The arbitrator shall be confined to the subjects submitted for decision, and will in no event, as a part of any such decision, impose upon either party any obligation to arbitrate on any subjects which have not

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been herein agreed upon as subjects for arbitration. The arbitrator shall interpret this Agreement in accordance with the reserved rights theory of labor agreements, whereby all rights not expressly limited by this Agreement are reserved to the Company. The arbitrator shall not have jurisdiction over the rights of Management not specifically restricted by this Agreement and shall not have the power to add to, subtract from, or vary the terms of this Agreement, or to substitute his/her discretion for that of Management, but shall be limited in power and jurisdiction to determine whether there has been a violation of this Agreement. The arbitrator shall hold a hearing as expeditiously as possible, and the arbitrator’s decision shall be final and binding upon both parties and any employees affected, and shall be rendered according to law. Section 6. Except where otherwise mutually agreed, failure to submit a matter to arbitration within the times above stated or failure to pursue subsequent steps within the time and in the manner above stated shall constitute a waiver by the employee and the Union of the right to arbitration. Section 7. If the Union provides the Company with a reasonable period of advance notice, the Company shall allow reasonable time off without pay for the Grievant and/or Union witnesses to prepare for arbitration. For the purpose of presenting an arbitration, the Grievant and one Union representative need not clock out if the proceeding occurs during Grievant’s and representative’s regularly scheduled working hours, but other Union representatives who are employees of the Company and all other employees participating in the arbitration proceeding shall clock out for that purpose. Section 8. Any provision in this Article to the contrary notwithstanding, no form of discipline, including suspension and discharge, of employees with less than twelve (12) months of service shall be subject to arbitration. Section 9. Expedited Arbitration

a. Notwithstanding the foregoing provisions of this Article, any grievance which only involves the suspension or discharge of a single bargaining unit member, where the sole issue being grieved involves whether the Company had just cause to suspend or discharge the employee, may be submitted to the expedited arbitration process outlined in this Section. All other grievances must be processed as outlined in the foregoing sections of this Article. However, any such suspensions or

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discharges that involve facts and/or issues that are also being investigated and/or litigated in the context of an administrative charge or court action are also expressly excluded from this expedited arbitration process.

b. If the Union chooses to pursue a grievance as outlined in this

Section, it must promptly notify the Company of its decision in writing within fifteen (15) calendar days after the filing of a request for arbitration.

c. The procedure for expedited arbitration will be as follows:

1. The parties will choose the next arbitrator listed on the

Permanent Panel described in Section 3, and will promptly notify the arbitrator in writing that they desire to resolve a grievance by expedited arbitration. The arbitrator will promptly notify the parties in writing of the hearing date. In the event that arbitrator cannot conduct a hearing within sixty (60) days of receiving notice from the parties, the parties shall select the next arbitrator on the Panel.

2. If mutually agreed, the parties may submit a joint written

stipulation of facts to the arbitrator prior to the hearing.

3. The hearing may be conducted solely in Spanish as long as the Grievant and all management witnesses are fluent in Spanish. In addition, the hearing will be informal without formal rules of evidence and without a transcript. However, the arbitrator will be satisfied himself/herself that the evidence submitted is of a type on which he/she can rely, that the hearing is in all respects a fair one, and that all facts necessary to a fair settlement and reasonably obtainable are brought before the arbitrator.

4. Within five (5) working days after the hearing, each party

may submit a brief written summary of the issues raised at the hearing and arguments supporting its position. Such summaries must not to exceed 10 pages. The arbitrator will provide his/her decision within five (5) working days after receiving the parties’ briefs. He/She will provide the parties a brief written statement of the reasons supporting his/her decision.

5. The time limits contained in this Section may only be extended by mutual agreement of the parties or at the

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arbitrator's request, in either case only in emergency situations. Such extensions will not circumvent the purpose of this procedure.

6. The arbitrator shall limit any award of back pay to nine (9)

months unless a deadline has been extended at the request of the Company. In the event that the Company has received an extension of a deadline, the arbitrator shall have the authority to award back pay for the period of extension granted to the Company in addition to the nine (9) months mentioned previously.

7. The arbitrator will be bound by Article 9, Section 5.

Section 10. Unless the parties agree otherwise, all arbitration hearings under this Article will be conducted in Puerto Rico.

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ARTICLE 10 NO STRIKE - NO LOCKOUT

Section 1. During the life of this Agreement, the Union and the employees covered under this Agreement, shall not directly or indirectly cause, call, or sanction strikes of any kind, including sympathy strikes and strikes in protest of alleged unfair labor practices, boycotts, work stoppages or slowdowns which interfere with the Company’s production or business. Section 2. In the event any violation of the previous Section occurs, which is unauthorized by the Union, the Company agrees that there shall be no financial liability on the part of the Union or any of its officers or agents, provided that in the event of such unauthorized action the Union promptly advises the members of the Bargaining Unit that such action is unauthorized and that the involved members should return to work or cease such action. The Company and the Union will work together to bring any such unauthorized action to an end. Section 3. The Company retains the right to discipline employees engaged in, participating in, or encouraging any action as described in Section 1 of this Article. Section 4. The Company agrees that there will be no lockouts during the duration of this Agreement.

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ARTICLE 11 SENIORITY

Section 1. Seniority, as used in this Agreement, is defined as Net Credited Service as determined by the Administrative Committee.

Section 2. If more than one (1) employee has the same Seniority date, the last four digits of the Social Security Number will be used to establish the ranking. The employee with the lowest number will be considered the most senior.

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ARTICLE 12 HOURS OF WORK

Section 1. Full-time employees will normally be scheduled to work forty (40) hours per week which may be spread over any six (6) days within the calendar week. Section 2. The determination of hours, work schedules (which includes shifts and shift hours), overtime requirements and assignments thereto and the days to be worked shall be made following the procedure established by the Company, however:

a. The Company, except as provided in b. and d. below, will assign work schedules on the basis of seniority as defined in Article 11.

b. In the event there are business needs, as determined by the

Company, requiring certain qualifications for particular work schedules, the Company shall offer such schedules on the basis of seniority to those employees the Company determines possess the required qualifications. Management will provide the local Union Representative and the affected employees with an explanation of the underlying business needs requiring such scheduling and the expected duration.

c. Work schedules will normally be posted or furnished by the

Company to show the scheduled tours the employee is to work at least two (2) weeks prior to the start of the work period covered by the schedule. Such schedules shall include the starting and ending time of each of the tours making up the scheduled workweek. For tours longer than five (5) hours, such schedules will also include the starting and ending time and the length of the period to be allowed for meals, which period shall last from half (1/2) an hour to one (1) hour as determined by the Company. In the event that the employee works more than five (5) consecutive hours after the end of any meal period, but no more than a total of (10) hours during that tour, the employee will not be entitled to a second meal period on that tour. Any additional meal period required because the employee works more than five (5) hours after the end of the prior meal period shall last half (1/2) an hour.

If no work schedule change is so posted or furnished prior to the time specified above, the schedule in effect for the employee for

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the last calendar week assigned to work shall be considered as that employee’s work schedule for the next calendar week.

d. If, during the period for which schedules have been established,

the Company determines unexpected absences or business needs necessitate a change in the posted work schedule, the Company will normally reassign schedules by seeking qualified volunteers (as defined by the Company) then assigning employees in inverse order. The Company will endeavor to notify employees twenty-four (24) hours in advance of the need for such schedule changes.

e. A work schedule for an employee may be changed if the

employee so requests and the Company approves such request. Section 3. Employees will be permitted to take one (1) fifteen (15) minute break for every four (4) hours of work. Such breaks shall be scheduled at the discretion of the Company. Section 4. Employees will be entitled to work provided that the physical condition and conduct of the employee permit such employee to satisfactorily perform the work, and a sufficient period of time for adequate rest has elapsed since the employee last worked. It is not possible to specifically evaluate “a sufficient period of time for adequate rest,” as this is dependent upon the nature of the work being performed, the conditions under which the work is performed, and the employee’s physical condition. When an employee works sixteen (16) hours or more in a twenty-four (24) hour period, the employee shall normally be allowed eight (8) hours for adequate rest time between such work period and the next work period.

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ARTICLE 13 WORK ASSIGNMENTS

Section 1. The Company shall determine whether to staff a position or fill a vacancy and the method or combination of methods it shall use for such purposes. In making this determination, the Company shall first give consideration to qualified internal candidates prior to off-street applicants. All vacancies within the Bargaining Unit shall be posted (manually or electronically) in such a fashion as to be accessible by employees. The posting shall include the title, pay range, and sufficient information regarding requirements and duties to adequately describe the vacancy. The vacancy shall remain posted for seven (7) calendar days. Section 2. In connection with Section 1 above, employees who have met a twelve (12) month time-in-title and location requirement shall be afforded the opportunity to submit to the Company a form on which they may identify their interest in being considered for vacancies which occur in the Bargaining Unit. Section 3. When a vacancy is to be filled from within the Bargaining Unit, Management will consider all qualified candidates who have forms on file relating to the vacancy in question. In selecting the employee to fill the position, the Company will first give due consideration to the candidates’ qualifications and past performance and where those factors are relatively equal, in the judgment of the Company, it shall consider seniority. Section 4. The Company agrees to provide the Union, in writing, the names and titles of all candidates selected under this Article, by the fifteenth (15th) calendar day after any such selection is made. Section 5. Nothing in this Agreement shall be applied or interpreted to restrict the Company in the exercise of its right to hire, promote or transfer; and, to the extent the needs of the business require, to have Bargaining Unit work performed by its supervisory personnel, or its right to make sales assignments without limitations.

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ARTICLE 14 FORCE ADJUSTMENT

Section 1. In the event that the Company determines that a surplus exists and a decrease in the work force becomes necessary, the Company will first advise the Union in writing prior to notifying the affected employee(s). The affected employee(s) will be notified not less than thirty (30) calendar days prior to the date the employee(s) is to be laid off. In matters involving the surplus of fifty (50) or more employees at a single location, the Company will provide the employees sixty (60) days advance notice of the surplus. Section 2. Under the circumstances set forth in Section 1 preceding, full time employees will be given preference, in accordance with their seniority, subject to their skills and experience, to perform the remaining work in the event of a reduction in force. Temporary employees and contractors will be separated under these circumstances before applying the seniority policy to regular employees. In the event a contractor has been secured for a specific project or is providing a service that regular employees cannot perform, they will be retained until completion of the project. Section 3. If a surplus remains after application of Section 2. preceding, any remaining surplus full time employees will be offered laterals and downgrades for which they are qualified, by order of seniority, to fill any available job vacancies within the Bargaining Unit. When the posting of job vacancies is implemented in accordance with the provisions of Article 13, Work Assignments, Section 1, these surplus employees will be considered for any vacancies for which they qualify within the Company.

Downgrades: Movement to a wage scale that has a lower top rate than the current position.

Laterals: Movement to a wage scale with the same top rate as the

current position. Section 4. Severance Payments. If the Company determines that a surplus exists as described in Section 1 resulting in a layoff of an eligible employee, that employee shall be eligible for either an indemnity payment as specified by Puerto Rico’s Law No. 80 of May 30, 1976, as amended, if such payment is required under said law, in which case the payment will be made in accordance with the provisions of the law; or severance pay equivalent to one (1) week’s wage for each completed six (6) months of continuous service during the first year of employment and an additional

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payment equivalent to one (1) week’s wage for each subsequent completed year of continuous service, up to a maximum of $12, 000.

Exceptions to payment must be expressly agreed by the parties in writing at the time of such force reduction. Any payments made by Company as required by law shall be credited toward any severance payment required under this or a subsequent agreement between the parties. It is the intent of the parties that the preceding sentence prevents a “double recovery” by a covered employee under both statutory obligations and those found or covered under this Agreement.

Section 5. For purposes of this Article, “Continuous Service” means the number of completed years served by the employee with the Company beginning with the date of the employee’s most recent engagement (or reengagement) and ending with the effective date of the employee’s termination. A period of Continuous Service is not broken by a leave of absence. For employees who were on the payroll or on an authorized leave of absence as of (go down date) February 19, 2011, and who remain in the continuous active service of the Company, their Net Credited Service in whole years (as determined by the Administrative Committee) upon the effective date of their termination shall be considered their period of Continuous Service with regard to the application of the provisions of this Article. Section 6. A former surplus employee who has been laid off and who files an application for employment will be considered prior to off-street applicants for vacancies for which he/she qualifies for a period of two (2) years from the date of layoff.

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ARTICLE 15 NON-DISCRIMINATION

The Company and the Union agree that they will not discriminate against any employee covered by this Agreement because of race, color, creed, sex, national origin, age, or disability status, or because of his/her position or membership/non-membership in the Union or lawful activities on behalf of the Union. Nothing in this Agreement shall be applied or interpreted to restrict the Company from taking such action as it deems necessary to fully comply with any federal, state or local laws, statutes, ordinances, rules, regulations and executive orders. The arbitration provisions of this Agreement shall not apply to any such actions or to any complaints, allegations, or charges of unlawful discrimination.

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ARTICLE 16 SAFETY

Section 1. Safety and health is a mutual concern of the Company and the Union. It benefits all parties to have employees work in safe and healthful environments and for employees to perform their work safely and in the interests of their own health. It is also necessary to promote a better understanding and acceptance of the principles of safety and health on the part of all employees, in order to provide for their own safety and health and that of their fellow employees, customers and the general public. To achieve the above principles, the Company and the Union agree to establish for the duration of this Agreement an advisory committee known as the Safety and Health Committee. The committee shall consist of not more than four (4) representatives each from the Company and the Union (to be appointed by the Company and the Union, respectively). This committee shall meet from time to time as required, but at least annually and more often as mutually agreed upon by the parties. This committee shall be charged with the responsibility to develop facts and recommendations so that both parties can make well-informed decisions regarding the occupational safety and health matters. The committee shall focus on all matters pertaining to occupational safety and health, including ergonomic concerns in the workplace. It shall also consider existing practices and rules relating to safety and health and formulate suggested changes in design and adoption of new practices and rules.

In connection with the Safety and Health Committee meetings under this Article, the Puerto Rico Mobility employee representative(s) designated by the Union shall suffer no loss in pay for time consumed in, and necessarily consumed in traveling to and from, these meetings. Section 2. None of the terms of this Agreement shall be applied or interpreted to restrict the Company from taking whatever actions are deemed reasonably necessary to fully comply with laws, rules and regulations regarding safety, and grievance and arbitration provisions of this Agreement shall not apply to any such actions. Discipline for failure to observe safety rules shall be grievable and arbitrable under the terms of this Agreement. Other matters relating to safety may be raised under the informal complaints provisions of Article 7, Grievance Procedure, and cannot otherwise be raised under the grievance and arbitration provisions of this Agreement.

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ARTICLE 17 COMPANY-UNION RELATIONSHIP

Section 1. The Company and the Union recognize that it is in the best interests of parties, the employees, and the public that all dealings between them continue to be characterized by mutual responsibility and respect. To ensure that this relationship continues and improves, the Company and the Union and their respective representatives at all levels will apply the terms of this Agreement fairly in accord with its intent and meaning and consistent with the Union’s status as exclusive bargaining representative of all employees in the Bargaining Unit. Each party shall bring to the attention of all employees in the Bargaining Unit their purpose to conduct themselves in a spirit of responsibility and respect and the measures they have agreed upon to ensure adherence to this purpose. The Company will notify the Union when new employees enter the Bargaining Unit. During the orientation of new hires, each party will bring to the attention of new employees the relationship between the parties and the Union’s status as exclusive representative of those employees in the Bargaining Unit. The Company will allow the Union to display CWA shield logos, as provided by the Union, at Company owned retail locations if agreed to by the Company. Section 2. The Union will keep the Company fully informed, in writing, on a current basis, of all local Union officers, Union stewards, or Union representatives who may be designated with the responsibility of representing the Union regarding the administration of this Agreement. Section 3. At any meeting between a representative of the Company and an employee in which discipline (including warnings which are to be recorded as such in the personnel file, suspension, demotion, or discharge) is to be announced, a Union representative may be present if the employee so requests. Time spent in such a meeting shall be considered work time. Section 4. Union representatives may request a reasonable amount of time off without pay for Union activities. Such requests for time off must be submitted in writing to the Union representative’s supervisor at least five (5) working days in advance, whenever possible. In determining whether to grant such requests, the Company shall give due consideration to service requirements as determined by the Company, the requests for time off from other employees, and its ability to replace the Union representatives’ services.

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Section 5. Time off for Union activities will be limited to 320 hours per calendar year per Union representative except that up to five (5) Union representatives may each be granted up to 960 hours per calendar year for Union activities. The period of such time off shall not be deducted from the Union representative’s seniority. The parties agree that the provisions of Section 2c of Article 21, Absences, shall not be used for Union functions. Section 6. Subject to the limitations in Sections 4 and 5 of this Article and in this Section 6, when an officer or designated representative of the Union requires time off from assigned Company duties to attend solely to Union matters, either before or after exhausting the time allowed without pay provided in Section 5 above, he or she will be granted a leave of absence without pay either upon the initiative of the Company or upon the request of the Vice President of the Union to the Director-Labor Relations (or their designee) of the Company, provided that:

a. No such leave of absence shall be for an initial period of less than thirty-one (31) calendar days or more than one (1) year, nor shall the total cumulative period of all such leaves of absence for any one (1) employee exceed seven (7) years; and

b. No more than four (4) Union officers or designated

representatives may be granted such leaves of absence at any one time at the request of the Union.

c. All Union leaves of absence will be granted with the following

conditions:

(1) During the absence the employee shall retain eligibility, if any, according to term of service, for the Medical Plan, the Dental Plan, the Group Life Insurance Plan, and the Vision Plan, provided that:

(a) The employee shall pay the premiums for the Medical

Plan, the Dental Plan, the Vision Plan, the Supplementary Group Life Insurance Plan, the Dependent Group Life Insurance Plan; and

(b) The Company shall pay the premium for the Group Life

Insurance Plan (Basic and Accidental Death or Dismemberment).

(2) During the absence the employee shall retain eligibility, if

any, according to term of service to:

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(a) Payments for absence due to illness during the first seven

(7) calendar days after expiration of the leave per Article 21, Section 6.

(b) Disability benefits beginning on the eighth (8th) calendar

day after expiration of the leave.

(c) Death benefits and service or deferred vested pension.

(3) The period of absence will not be deducted in computing term of employment, and the period of absence will not be credited for wage progression purposes.

(4) The pension base shall not in any manner be affected by a

Union leave of absence. Should an employee on such leave elect to retire at the termination thereof, the employee’s pension base, if any, shall be computed as if the employee were continually employed during the period of leave.

Section 7. A Working Relations Committee will be created for the purpose of discussing broad concerns of mutual interest to the parties. Committee proceedings shall not be used in lieu of the grievance or arbitration procedures. a. The Committee shall consist of no more than four (4)

representatives designated by the Company and no more than four (4) representatives designated by the Union. In connection with attendance at Working Relations Committee meetings, the employee representative(s) designated by the Union shall suffer no loss in pay for time consumed in, and necessarily consumed in traveling to and from, these meetings.

b. The Committee may meet every six (6) months upon request of

either party, or more frequently upon the mutual agreement of the parties, for the purpose of discussing whatever agenda either party may wish to present, including but not limited to subcontracting and supervisors' performance of Unit work.

c. Discussions and decisions of the Committee shall not add to,

subtract from or modify in any manner whatsoever the terms and conditions of this Agreement nor shall they constitute mid-term bargaining or be subject to the grievance and arbitration provisions of this Agreement.

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ARTICLE 18 UNION ACTIVITIES

The Union shall be permitted space to place bulletin boards on Company property. Such bulletin boards are to be used exclusively by the Union. The number of bulletin boards and their location shall be mutually agreed upon by the Union and the Company. Bulletin board material shall normally be restricted to the following:

a. Notices of Union recreational and social affairs; b. Notices of Union elections, appointments, and results of Union

elections; c. Notices of Union meetings; d. Other factual notices and announcements concerning official

business of the Union.

e. These shall not be considered as controversial or derogatory of the Company or its personnel.

Such material shall be posted and removed only by an official Union representative or a person designated by an official Union representative.

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ARTICLE 19 BASIS OF COMPENSATION

Section 1. Rates of Pay

a. The rates of pay and progression wage scales for full time employees shall be that shown in Appendix A.

b. Starting Rates: Each employee who enters the service of the

Company shall begin employment at the Start Rate for the appropriate job title, except that appropriate allowance over such starting rate may be made by the Company for an employee who has had previous experience or training considered to be of value.

c. When a (voluntary) change of title occurs, the employee will be

placed on the closest rate (not lower provided they are not over the top rate for the job they are moving to) of the new schedule that the employee was administered on the former schedule. The time interval to the next step increase on the new wage schedule will be six (6) months. No credit shall be allowed towards the next step increase. When an (involuntary) change occurs to a lower rated job, the employee will be pay protected for one (1) year if they are over the top rate for the job. At the conclusion of the year, they will be placed on the top rate. If the employee is not above the top rate of the job, they will be put in progression, if applicable. When an employee's title changes on the same date that a step increase is due, the step increase will be applied before the move to the new Wage Schedule.

d. Anytime an employee moves to another job and subsequently

retreats (employee or company initiated) to the former job within six (6) months for wage purposes, the employee will be treated as though he or she never left the former job. A vacancy must exist in the former position in order for a retreat to be initiated. The Employee will be allowed to retreat only if a vacancy exists.

Section 2. Nothing in this Agreement shall affect or limit the right of the Company to develop and implement such incentive programs as it chooses; or to pay such individual bonuses or commissions in such amounts or percentages as it may desire, either in connection with specific incentive programs or otherwise. If and to the extent that any such incentive

31

programs, individual bonuses, or commissions may be awarded, such award shall not constitute a binding precedent or practice with respect to any future incentive programs, individual bonuses, or commissions. The Company agrees to provide affected employees with a written statement of their commission plans, including any changes which might be made thereto from time to time, in advance of the effective date of such plan or changes. Such statement shall reflect the method of computation of such commissions. The Company agrees to notify the Union prior to notifying affected employees of changes made in incentive programs, bonuses, or commissions under the provisions of this Section. It is further the Company’s intent to provide, whenever practicable, at least one (1) week’s advance notice to the CWA. Section 3. Employees (except those exempt under the FLSA and prevailing applicable laws) shall receive one and one-half (1½) times their regular rate of pay for all time worked in excess of eight (8) hours in any twenty-four (24) hour period, or forty (40) hours within the workweek. For the sole purpose of computing the number of hours worked in excess of forty (40) hours within a workweek, Holidays shall be considered time worked. Any other overtime will be paid as required by prevailing applicable laws. Section 4. Employees who are assigned on-call duty will be paid $34 for each day of such assignment. This payment shall be in addition to any applicable compensation from such duty. Section 5. Employees, who are called by a supervisor or designate to report to work, or to perform work from home, shall be paid at the applicable rate of pay for actual time worked. If such call requires an employee to make a round trip between their place of residence and their place of work in addition to their normal commute to and from work, the employee shall be compensated at their applicable rate of pay for reasonable time required to make such additional round trip. Section 6. Employees performing non-retail work on Sunday shall be paid a premium of ten (10) percent of their basic wage rate. Section 7. A night differential shall be paid to employees performing non-retail work for each scheduled hour, or fraction thereof, worked after 8 p.m. and before 6 a.m. in the amount of ten (10) percent of the employee’s basic hourly rate.

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Section 8. A relief differential consisting of ten (10) percent of the employee’s basic hourly wage rate will be paid to any employee who is assigned to relieve or assist a manager in the performance of work, for each hour the employee performs this work or receives associated training. These assignments may involve planning, distributing, directing, coordinating, training responsibilities, and performing managerial opening and/or closing (Key Holder) responsibilities in any Retail location. In no event shall such assigned employee have any involvement in discipline or performance evaluation of other employees. An employee involved in such training and/or assignment shall continue to be subject to all applicable provisions of this Agreement.

Section 9. A qualified employee who is temporarily assigned and performs duties of a job title with a higher top wage rate will be paid a temporary upgrade differential consisting of five (5) percent of the employee’s basic hourly wage rate for each hour such duties are performed if such assignment exceeds two (2) weeks.

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ARTICLE 20 TRAVEL

Section 1. Time spent in local travel at the direction of the Company after reporting for duty and before release from duty shall be treated as work time. Section 2. Employees directed by the Company to use their personal car for travel between work locations during the workday or for other authorized Company business shall be paid the IRS allowable rate per mile*. Section 3. Employees will normally be assigned a regular work location but may also be assigned to work at a temporary location or to rotate between locations as directed by the Company.

a. Any travel time on a scheduled day necessitated by the temporary assignment which occurs prior to reporting for duty and/or after release from duty and which exceeds the employee’s normal commute will be paid as work time.

b. Any travel time on a nonscheduled day that occurs during an employee’s normal scheduled hours shall be paid as work time.

c. The Company will reimburse employees for use of their personal

car at the IRS allowable rate per mile* for that portion of any trip that occurs while the employee is being paid for work time.

Section 4. An employee away from home on a Company assignment will receive reimbursement for all reasonable, necessary and ordinary business expenses incurred in the fulfillment of such assignment. All such expenses shall be supported by an original receipt. * In no case will the rate of reimbursement exceed the IRS allowable

reimbursement rate.

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ARTICLE 21 ABSENCES

Section 1. All leaves of absence shall be without pay except as otherwise provided in this Article. Section 2.

a. Employees may request personal leaves of absence. Each request must be in writing and must specify the reason the leave of absence is desired. Earned time off will not have to be exhausted prior to a personal leave of absence.

b. Employees who are eligible under the provisions of the Family and

Medical Leave Act of 1993 and/or the Working Mother’s Act (Law No. 3 of March 13, 1947) will be subject to the provisions of those statutes and to subsequent changes in the statutes as they may occur.

c. Any employee may request up to thirty (30) days of absence based on other reasons not included in b. above.

d. Employees with at least twelve (12) months Continuous Service

with the Company may request leaves of absence longer than thirty (30) days for the following reasons: service in the Peace Corps or VISTA; appointment or campaign/election to public office. Employees who are absent under this provision for more than thirty (30) consecutive calendar days are not guaranteed reinstatement with the Company.

e. To the extent authorized by law, employees who are granted

leaves of absence of thirty (30) days or less shall suffer no break in service or loss of benefits. Upon return, such employees shall be reinstated to their former job title and rate of pay.

f. In requesting any of the above leaves of absence, employees shall

give due consideration to the Company’s ability to replace their services during such a leave, and such leave shall be granted solely at the discretion of the Company. Should the Company grant such leave, permission shall be in writing setting forth the dates for such leave.

35

Section 3. Military Leave.

a. In the event employees covered by this Agreement are required to absent themselves for the purpose of performing military duty in the United States Armed Forces or the National Guard, and such duty requires absence during scheduled Company work hours, the employee shall be excused for such military duty in accordance with USERRA or other applicable law. The Company will only provide difference in pay for those regularly scheduled workdays falling within the period of excused absence, not to exceed eleven (11) such days within a calendar year.

b. The difference in pay allowed in paragraph a. above shall mean the

excess, if any, of Company pay at the employee's basic hourly rate for such absent time (plus any night or other differentials normally applicable) over the hourly equivalent of the employee's government base pay obtained by dividing the monthly government base pay rate by two hundred forty (240).

c. Employees called to military duty will immediately inform their

supervisors and then will provide copies of their military orders as soon as possible.

Section 4. Civic Duty. An employee who serves during his/her regularly scheduled work time as a subpoenaed witness in a criminal case in which the employee is not a party, or as a witness for the Company, shall be paid the difference between the employee’s basic wage rate and the amount received for such service. An employee lawfully subpoenaed under penalty of arrest for failure to appear in a court case, in which they are a party, shall be excused from work without pay. Section 5. Funerals. An employee shall be paid up to three (3) days at his/her basic wage rate for the necessary scheduled time absent due to the funeral of a member of the immediate family. The leave may not begin until the day of death, and shall not extend beyond the day of the funeral. For purposes of this Section, immediate family shall mean spouse, children, sister, brother, mother, father, stepparents, mother-in-law, father-in-law, daughter-in-law, son-in-law, brother-in-law, sister-in-law, grandmother, grandfather, grandson, granddaughter, stepson, stepdaughter, legally recognized partner, and parent of an employee’s dependent child. Payment for such absent time shall consist of basic pay which would otherwise have been received had the regular shift been worked. Pay for part-time employees will be pro-rated based on the ratio of their equivalent workweek compared to that of a full-time employee.

36

In the event of the death of an employee’s wife, husband, legally recognized partner, daughter, son, mother, or father, an employee shall, upon the employee’s request, be excused from scheduled time up to an additional five (5) days. Paid individual days may be substituted for these excused days at the employee’s option. Section 6. Illness and Injury. a. Employees hired prior to August 1, 1995 shall accrue sick pay at the rate

of 1 ¼ days for each month in which they work 100 hours or more, or a proportion thereof if they work less than 100 hours during the month.

b. Employees hired on or after August 1, 1995 shall accrue sick pay at the

rate of 1 day for each month in which they work at least 115 hours.

c. Employees shall accrue sick pay up to a maximum accrual of 15 days. Employees may be permitted, based on the needs of the business as determined by the company, to use up to five (5) sick days with pay in one (1) hour increments for emergencies. Employees will provide as much advance notice to their supervisor as possible.

d. Payment and enjoyment of sick pay shall be subject to compliance with

applicable statutory requirements and Company policies.

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ARTICLE 22 VACATIONS

Section 1. Employees hired prior to December 31, 2001 shall accrue vacations at the rate of 1½ days for each month in which they work 100 hours or more, or a proportion thereof if they work less than 100 hours during the month. (In accordance with Puerto Rico Law/Statute.) Section 2. Employees hired on or after January 1, 2002 shall accrue vacations at the rate of 1 ¼ day for each month in which they work at least 115 hours. (In accordance with Puerto Rico Law/Statute.) Section 3. Employees who could complete ten (10) years or more but less than twenty (20) years of NCS within the vacation year will receive one additional week vacation. Section 4. Employees who could complete twenty (20) years or more of NCS within the vacation year will receive one week in addition to above. Section 5. Except as provided below, payment and enjoyment of vacation shall be subject to compliance with applicable statutory requirements and Company policies. Section 6. Any employee who has accrued more than five (5) vacation days may select the excess of five (5) days and up to one (1) week of vacation on a day-at-a-time basis during the vacation selection process described in Section 5 of this Article. Any employee, if eligible for three (3) or more weeks of vacation, may elect to take up to two (2) weeks vacation on a day-at-a-time basis during the vacation selection process described in Section 5 of this Article. Individual vacation days may be taken in half-day increments. Section 7. Vacations shall be selected in a work group based on seniority. Periods available for selection shall take into consideration the needs of the Company, force requirements, and the desires of the employees. Advance selection of vacation periods shall commence on or after November 1 and shall conclude no later than December 15 of the year preceding the year in which such vacation leave is to be taken.

a. Employees must first express preference for full weeks of

vacation, including at least one consecutive five (5) working days vacation period, in seniority order within the vacation group.

38

b. In a subsequent interview by Management, also in seniority order within the vacation group, the employee may select day-at-a-time vacation days as provided in Section 6 above, and his/her floating and designated holidays as provided in Article 23. Individual days not selected at this time and days to be taken in half-day increments will be granted, consistent with force requirements, on the basis of the earliest request (“first-come, first-served”) to the employee’s immediate supervisor, or such other manager as may be designated.

Section 8. If, before receiving the vacation to which he or she has become entitled, as provided for in Section 1 or Section 2 of this Article, an employee is dismissed; such employee will be entitled to an allowance in cash equal to and in lieu of such vacation in accordance with Puerto Rico Law/Statute. If an employee dies before receiving his/her unused vacation for the vacation year, as provided for in Section 1 or 2 of this Article, payment in lieu of vacation will be made for any unused vacation time to the employee’s estate. Section 9. The Company must approve vacation carryover and, if deemed necessary at anytime, can assign vacation time to avoid it

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ARTICLE 23 HOLIDAYS

Section 1. Each full-time employee performing non-retail work shall receive eight (8) hours of pay at the employee’s basic straight-time rate of pay, unless otherwise provided for in this Agreement, provided that such employee, if excused from work on a Holiday, shall have worked all hours scheduled on the last scheduled workday before and on the first scheduled workday after the Holiday or the day celebrated as such, unless excused by Management (not applicable to the use of Floating Holiday(s) or Designated Holiday unless the Designated Holiday is scheduled by the Company). Employees who are normally scheduled to work more than nineteen (19) but less than forty (40) hours per week will receive pro-rated holiday pay based on their “average equivalent workweek”. The “equivalent workweek” will be determined by dividing the employee’s total hours worked per month by 4.35, rounding the result to the next higher whole number. The “average equivalent workweek” will be determined by the average over the past six (6) months. Employees who are absent without pay on thirty (30) or more calendar days shall not be eligible for holiday pay. The Holidays shall be: New Year’s Day Thanksgiving Day Memorial Day Independence Day Christmas Day Good Friday Labor Day Three Kings Day

*One Floating Holiday *One Designated Holiday

The Designated Holiday must be scheduled by the Company in accordance with the needs of the business. Such designation will be made prior to the advance vacation selection period outlined in Section 7 of Article 22, Vacations. Should the Company not schedule the Designated Holiday, employees may select the day on which to celebrate their Designated Holiday, as well as their Floating Holiday, in accordance with the provisions of Article 22, Vacations, Section 7.b. *For new employees, Floating and Designated Holiday eligibility will be after six (6) months of Net Credited Service. Section 2. In the event a closing day occurs under Puerto Rico Law 47 that is not a designated Holiday per this agreement, an employee working at locations in which the general commerce must close as per Puerto Rico Law 47 will be scheduled to work another day during the scheduled work tour. If, in the opinion of the Company, this creates a case where there is not

40

enough work for the remainder of the week for all employees, volunteers will be sought, and offered in seniority order based on the needs of the business, for working a reduced work week. If there are not enough volunteers, employees will be selected in inverse seniority order for the reduced work week. Each full-time employee performing retail work shall receive eight (8) hours of Holiday pay at the employee’s basic straight-time rate of pay, unless otherwise provided for in this Agreement, provided that such employee, if excused from work on a Holiday, shall have worked all hours scheduled on the last scheduled workday before and on the first scheduled workday after the Holiday or the day celebrated as such, unless excused by Management (not applicable to the use of Floating Holiday(s) or Designated Holiday unless the Designated Holiday is scheduled by the Company). Employees who are normally scheduled to work more than nineteen (19) but less than forty (40) hours per week will receive pro-rated Holiday pay based on their “average equivalent workweek”. The “equivalent workweek” will be determined by dividing the employee’s total hours worked per month by 4.35, rounding the result to the next higher whole number. The “average equivalent workweek” will be determined by the average over the past six (6) months. Employees who are absent without pay on thirty (30) or more calendar days shall not be eligible for Holiday pay. The Holidays shall be: New Year’s Day Thanksgiving Day Mother’s Day Easter Christmas Day Good Friday Father’s Day Three Kings Day

*One Floating Holiday *One Designated Holiday

The Designated Holiday must be scheduled by the Company in accordance with the needs of the business. Such designation will be made prior to the advance vacation selection period outlined in Section 7 of Article 22, Vacations. Should the Company not schedule the Designated Holiday, employees may select the day on which to celebrate their Designated Holiday, as well as their Floating Holiday, in accordance with the provisions of Article 22, Vacations, Section 7.b. *For new employees, Floating and Designated Holiday eligibility will be after six (6) months of Net Credited Service.

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Section 3. When a Holiday falls on a Saturday or Sunday, and the employee is not scheduled to work one of those days, the employee may be assigned another day off during the week. Section 4. Employees who work on a Holiday shall be paid for such work at time and one-half for all work on such Holidays, together with the holiday pay provided for in Section 1. or Section 2. above. Section 5. Eligible employees who have been scheduled to work on a Holiday and fail to do so shall not receive pay for the Holiday. Section 6. Where the Company must close certain operations as legally required, employees will not be officially scheduled to work in those operations.

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ARTICLE 24 WAIVER OF FURTHER BARGAINING

Section 1. The parties agree that this Agreement contains their full and complete understanding and that any prior practices, benefits, or oral agreements are superseded by the terms of this Agreement. The parties further agree that no practices, oral agreements or benefits will be recognized or regarded as binding unless committed to writing and signed by the parties as a supplement to this Agreement. Section 2. Since this Agreement expresses the understanding of the parties in respect to all matters deemed by them to be applicable to the Bargaining Unit, for the term of this Agreement, the Company and the Union each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated, to bargain collectively with respect to any subject or matter referred to or covered by this Agreement, or with respect to any subjects or matters not specifically referred to or covered by this Agreement, even though such subjects or matters may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed this Agreement. Section 3. Neither the Company nor the Union by this Agreement waive any right, legal or equitable, which it would otherwise have except as specifically defined and provided in this Agreement, which sets forth all understandings and agreements arrived at by the parties. Included within such rights, but not by way of limitation, is the Company's right to plan, direct and control its operations, to extend, limit or curtail operations, to determine the number, location and operation of its facilities, to study, determine, and regulate the methods, quantity, and quality of work, and the sources and kinds of merchandise, materials, parts, facilities and equipment used, handled or sold, to maintain order and efficiency, and to establish, modify and enforce rules and regulations, as well as the right to make and enter into decisions to do any of the foregoing and to determine and resolve the effects of such decisions by whatever means the Company deems appropriate.

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44

BARGAINING TEAM MEMBERS

AT&T Mobility, LLC Communications Workers of America Victor Menendez Gerald Souder Paul Boris Luis Benitez Brian Cattaneo Rafael Castro David Holland Carlos Christian Wilfredo Guivas-Ramos

Jorge Rodriguez

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APPENDIX A

Analyst Associate Field/ Technical Support -Cellsite

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 337.00 345.50 353.50 362.50 1 466.00 477.50 488.00 500.00

2 352.50 361.50 369.50 379.00 2 487.50 500.00 511.00 523.50

3 368.50 378.00 386.50 396.50 3 510.50 523.00 534.50 548.00

4 385.50 395.50 404.50 414.50 4 534.50 547.50 559.50 573.50

5 403.50 413.50 423.00 433.50 5 559.50 573.00 586.00 600.50

6 422.00 432.50 442.50 453.50 6 585.50 600.00 613.00 628.50

7 441.00 452.50 462.50 474.50 7 612.50 628.00 642.00 657.50

8 461.50 473.00 484.00 496.00 8 641.50 657.00 672.00 688.50

9 482.50 495.00 506.00 519.00 9 671.00 688.00 703.50 720.50

10 505.00 517.50 529.50 542.50 10 702.50 720.00 736.00 754.50

11 528.00 541.50 553.50 567.50 11 735.50 753.50 770.50 789.50

12 552.50 566.50 579.00 593.50 12 769.50 789.00 806.50 826.50

13 577.50 592.50 605.50 621.00 13 805.50 825.50 844.00 865.00

14 604.00 619.50 633.50 649.00 14 843.00 864.00 883.50 905.50

15 632.00 648.00 662.50 679.00 15 882.50 904.50 925.00 948.00

Associate Field/ Technical Support -Switch Senior Associate Field/Technical Support

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 466.00 477.50 488.00 500.00 1 603.50 618.50 632.50 648.50

2 491.00 503.00 514.50 527.00 2 630.00 646.00 660.50 677.00

3 517.50 530.50 542.00 555.50 3 658.00 674.50 689.50 707.00

4 545.50 559.00 571.50 585.50 4 687.00 704.00 720.00 738.00

5 575.00 589.00 602.00 617.00 5 717.50 735.00 751.50 770.50

6 606.00 621.00 634.50 650.50 6 749.00 767.50 785.00 804.50

7 638.50 654.50 669.00 685.50 7 782.00 801.50 819.50 840.00

8 673.00 689.50 705.00 722.50 8 816.50 836.50 855.50 877.00

9 709.00 727.00 743.00 761.50 9 852.50 873.50 893.50 916.00

10 747.50 766.00 783.00 802.50 10 890.00 912.00 933.00 956.00

11 787.50 807.50 825.50 846.00 11 929.50 952.50 974.00 998.50

12 830.00 851.00 870.00 891.50 12 970.50 994.50 1017.00 1042.50

13 874.50 896.50 917.00 940.00 13 1013.00 1038.50 1062.00 1088.50

14 922.00 945.00 966.50 990.50 14 1058.00 1084.00 1108.50 1136.50

15 971.50 996.00 1018.50 1044.00 15 1104.50 1132.00 1157.50 1186.50

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APPENDIX A

Business Customer Service Specialist I Business Customer Service Specialist II

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 349.00 357.50 365.50 374.50 1 369.00 378.00 386.50 396.00

2 360.50 369.50 377.50 387.00 2 383.00 392.00 401.00 411.00

3 372.50 382.00 390.50 400.00 3 397.00 407.00 416.00 426.50

4 385.00 394.50 403.50 413.50 4 412.00 422.00 432.00 442.50

5 398.00 408.00 417.00 427.00 5 427.50 438.00 448.00 459.00

6 411.00 421.50 431.00 441.50 6 443.50 454.50 465.00 476.50

7 425.00 435.50 445.00 456.00 7 460.50 471.50 482.50 494.00

8 439.00 450.00 460.00 471.50 8 477.50 489.50 500.50 513.00

9 454.00 465.00 475.50 487.00 9 495.50 507.50 519.50 532.00

10 469.00 480.50 491.50 503.50 10 514.00 527.00 539.00 552.00

11 484.50 496.50 507.50 520.50 11 533.50 546.50 559.00 573.00

12 500.50 513.50 524.50 537.50 12 553.50 567.00 580.00 594.50

13 517.50 530.50 542.00 555.50 13 574.00 588.50 602.00 616.50

14 534.50 548.00 560.50 574.50 14 595.50 610.50 624.50 640.00

15 552.50 566.50 579.00 593.50 15 618.00 633.50 648.00 664.00

Network Infrastructure Technician Network Support Administrator

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 466.00 477.50 488.00 500.00 1 466.00 477.50 488.00 500.00

2 487.50 500.00 511.00 523.50 2 487.50 500.00 511.00 523.50

3 510.50 523.00 534.50 548.00 3 510.50 523.00 534.50 548.00

4 534.50 547.50 559.50 573.50 4 534.50 547.50 559.50 573.50

5 559.50 573.00 586.00 600.50 5 559.50 573.00 586.00 600.50

6 585.50 600.00 613.00 628.50 6 585.50 600.00 613.00 628.50

7 612.50 628.00 642.00 657.50 7 612.50 628.00 642.00 657.50

8 641.50 657.00 672.00 688.50 8 641.50 657.00 672.00 688.50

9 671.00 688.00 703.50 720.50 9 671.00 688.00 703.50 720.50

10 702.50 720.00 736.00 754.50 10 702.50 720.00 736.00 754.50

11 735.50 753.50 770.50 789.50 11 735.50 753.50 770.50 789.50

12 769.50 789.00 806.50 826.50 12 769.50 789.00 806.50 826.50

13 805.50 825.50 844.00 865.00 13 805.50 825.50 844.00 865.00

14 843.00 864.00 883.50 905.50 14 843.00 864.00 883.50 905.50

15 882.50 904.50 925.00 948.00 15 882.50 904.50 925.00 948.00

47

APPENDIX A

Representative 1 - Customer Care Representative II - Customer Care

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 349.00 357.50 365.50 374.50 1 369.00 378.00 386.50 396.00

2 360.50 369.50 377.50 387.00 2 383.00 392.00 401.00 411.00

3 372.50 382.00 390.50 400.00 3 397.00 407.00 416.00 426.50

4 385.00 394.50 403.50 413.50 4 412.00 422.00 432.00 442.50

5 398.00 408.00 417.00 427.00 5 427.50 438.00 448.00 459.00

6 411.00 421.50 431.00 441.50 6 443.50 454.50 465.00 476.50

7 425.00 435.50 445.00 456.00 7 460.50 471.50 482.50 494.00

8 439.00 450.00 460.00 471.50 8 477.50 489.50 500.50 513.00

9 454.00 465.00 475.50 487.00 9 495.50 507.50 519.50 532.00

10 469.00 480.50 491.50 503.50 10 514.00 527.00 539.00 552.00

11 484.50 496.50 507.50 520.50 11 533.50 546.50 559.00 573.00

12 500.50 513.50 524.50 537.50 12 553.50 567.00 580.00 594.50

13 517.50 530.50 542.00 555.50 13 574.00 588.50 602.00 616.50

14 534.50 548.00 560.50 574.50 14 595.50 610.50 624.50 640.00

15 552.50 566.50 579.00 593.50 15 618.00 633.50 648.00 664.00

Representative I - Credit & Collections Retail Sales Consultant

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 308.50 316.00 323.00 331.00 1 353.00 362.00 370.00 379.50

2 320.50 328.50 335.50 344.00 2 366.00 375.50 383.50 393.50

3 333.00 341.50 349.00 357.50 3 379.50 389.00 398.00 408.00

4 346.50 354.50 362.50 371.50 4 393.50 403.50 412.50 423.00

5 360.00 368.50 377.00 386.00 5 408.00 418.50 427.50 438.50

6 374.00 383.00 391.50 401.50 6 423.00 434.00 443.50 455.00

7 388.50 398.00 407.00 417.00 7 439.00 450.00 460.00 471.50

8 404.00 414.00 423.00 433.50 8 455.00 466.50 477.00 489.00

9 420.00 430.00 439.50 450.50 9 472.00 483.50 494.50 507.00

10 436.50 447.00 457.00 468.50 10 489.00 501.50 512.50 525.50

11 453.50 464.50 475.00 487.00 11 507.50 520.00 531.50 545.00

12 471.50 483.00 493.50 506.00 12 526.00 539.00 551.00 565.00

13 490.00 502.00 513.00 526.00 13 545.50 559.00 571.50 586.00

14 509.00 521.50 533.00 546.50 14 565.50 579.50 592.50 607.50

15 529.00 542.00 554.00 568.00 15 586.50 601.00 614.50 630.00

48

APPENDIX A

Sales Support Representative Work Force Administrator

StepEffective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14 Step

Effective 2/19/11

Effective 2/19/12

Effective 2/17/13

Effective 2/16/14

1 337.00 345.50 353.50 362.50 1 349.00 357.50 365.50 374.50

2 352.50 361.50 369.50 379.00 2 361.00 369.50 378.00 387.50

3 368.50 378.00 386.50 396.50 3 373.00 382.50 391.00 400.50

4 385.50 395.50 404.50 414.50 4 386.00 395.50 404.50 414.00

5 403.50 413.50 423.00 433.50 5 399.00 409.00 418.00 428.50

6 422.00 432.50 442.50 453.50 6 412.50 423.00 432.50 443.00

7 441.00 452.50 462.50 474.50 7 426.50 437.50 447.00 458.00

8 461.50 473.00 484.00 496.00 8 441.50 452.00 462.50 474.00

9 482.50 495.00 506.00 519.00 9 456.50 467.50 478.00 490.00

10 505.00 517.50 529.50 542.50 10 472.00 483.50 494.50 507.00

11 528.00 541.50 553.50 567.50 11 488.00 500.00 511.50 524.00

12 552.50 566.50 579.00 593.50 12 504.50 517.00 529.00 542.00

13 577.50 592.50 605.50 621.00 13 522.00 535.00 547.00 560.50

14 604.00 619.50 633.50 649.00 14 539.50 553.00 565.50 579.50

15 632.00 648.00 662.50 679.00 15 558.00 572.00 585.00 599.50

49

50

51

52

53

54

55

56

57

58

59